IRS Halts PLRs on “Active Business” Requirement for QSBS

IRC Section 1202 offers little guidance as to what is meant by certain excluded trades or businesses outlined in Section 1202(e) - such as “health services”, “consulting”, “engineering”, etc.  As such, shareholders wondering whether the company they hold stock in is in a Qualified Trade have sought … Read More

Wisconsin Adopts QSBS!

You may have noticed some more blue on our state QSBS map. As of October 25, 2023, Wisconsin allows for the full QSBS exclusion! Governor Tony Evers signed Assembly Bill 406 which modified Wisconsin's conformity to Federal QSBS, retroactive to QSBS gains realized after December … Read More

Early-Stage Valuation and QSBS

In a recent article about the state of pre-seed valuation, Brett Calhoun of ScaleVC discusses the challenges of valuing pre-seed startups and how to avoid overvaluation. Calhoun notes that pre-seed startups are often overvalued because they have little to no track record and are therefore difficult to … Read More

Preserving QSBS During Banking Turmoil

Upon the collapse of Silicon Valley Bank, First Republic Bank and other banks during 2023, many companies moved cash which may pose risks for QSBS eligibility in various ways.  Excess Cash or Other Holdings (perhaps from drawing down on lines of credit) may cause a company to fail … Read More